Customer acquisition cost is measured by dividing your total marketing/sales spend during a set period, or a particular promotion, divided by the number of new customers who became buyers.
So, if your total spend was $500 and that resulted in 5 new customers then your customer acquisition cost (CAC) is $100 per new customer. Of course, all successful businesses know their CAC. Do you?
Before you start your next promotional drive, you may wish to measure the CAC on your last promotion. You may be surprised… or worried!
Luckily, promotional activity on the web can be accurately measured. That allows you to see what works and what is a waste of time and money.
Interested in knowing more? Email me at cheryl@kafedigitalmarketing.com
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